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                          HOUSE BILL 1455

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State of Washington      56th Legislature     1999 Regular Session

By Representatives Ericksen, Lovick, Barlean and Thomas; by request of Department of Revenue

Read first time 01/26/1999.  Referred to Committee on Finance.

Correcting errors related to property tax levies.

    AN ACT Relating to correcting errors related to property tax levies; adding a new section to chapter 84.52 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 84.52 RCW to read as follows:

    (1) If an error has occurred in the levy of property taxes that has caused all taxpayers within a taxing district, other than the state, to pay an incorrect amount of property tax, the assessor shall correct the error by making an appropriate adjustment to the levy for that taxing district in the succeeding year.  The adjustment shall be made without including any interest.  If the governing authority of the taxing district determines that the amount of the adjustment in the succeeding year is so large as to cause a hardship for the taxing district or the taxpayers within the district, the adjustment may be made on a proportional basis over a period of not more than three consecutive years.

    (a) A correction of an error in the levying of property taxes shall not be made for any period more than three years preceding the year in which the error is discovered.

    (b) When calculating the levy limitation under chapter 84.55 RCW for levies made following the discovery of an error, the assessor shall determine and use the correct levy amount for the year or years being corrected as though the error had not occurred.  The amount of the adjustment determined under this subsection (1) shall not be considered when calculating the levy limitation.

    (c) If the taxing district in which a levy error has occurred does not levy property taxes in the year the error is discovered, or for a period of more than three years subsequent to the year the error was discovered, an adjustment shall not be made.

    (2) If an error has occurred in the distribution of property taxes so that property tax collected has been incorrectly distributed to a taxing district or taxing districts wholly or partially within a county, the treasurer of the county in which the error occurred shall correct the error by making an appropriate adjustment to the amount distributed to that taxing district or districts in the succeeding year.  The adjustment shall be made without including any interest.  If the treasurer, in consultation with the governing authority of the taxing district or districts affected, determines that the amount of the adjustment in the succeeding year is so large as to cause a hardship for the taxing district or districts, the adjustment may be made on a proportional basis over a period of not more than three consecutive years.  A correction of an error in the distribution of property taxes shall not be made for any period more than three years preceding the year in which the error is discovered.

    (3) This section takes effect January 1, 2000, and applies to errors that occurred not more than three years before January 1, 2000.

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